Journal Article

Policy Update: Will Chevron Keep its Stripes?

Abstract: Following the will of Congress is often a complicated endeavor for regulators, especially when lawmakers leave aspects of a regu­latory law unclear. That uncertainty often leads to litigation. But how should courts determine if an admin­istrative agency has gone outside the bounds of the law when designing regulations? This is an important ques­tion for regulators, like the Fed, that have been charged with implementing laws passed by Congress. In the 1984 landmark case Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc. the Supreme Court estab­lished a process to determine whether an agency has acted properly in creat­ing a regulation in the face of legis­lative uncertainty. This concept, commonly referred to as Chevron deference, has been a critical legal concept that has governed how courts oversee the regulatory process for the past 40 years. In January, the Supreme Court heard arguments in two cases that could overturn Chevron and set out new expectations for how agen­cies should implement laws passed by Congress.

Keywords: financial institutions; Financial regulation;

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Bibliographic Information

Provider: Federal Reserve Bank of Richmond

Part of Series: Econ Focus

Publication Date: 2024-04

Volume: 24

Issue: 1Q/2Q

Pages: 5